THE CRISES OF DEMOCRATIC CAPITALISM

New Left Review 71, September-October 2011

by WOLFGANG STREECK originally published at New Left Review

The collapse of the American financial system that occurred in 2008 has since turned into an economic and political crisis of global dimensions. [1] How should this world-shaking event be conceptualized? Mainstream economics has tended to conceive society as governed by a general tendency toward equilibrium, where crises and change are no more than temporary deviations from the steady state of a normally well-integrated system. A sociologist, however, is under no such compunction. Rather than construe our present affliction as a one-off disturbance to a fundamental condition of stability, I will consider the ‘Great Recession’ [2] and the subsequent near-collapse of public finances as a manifestation of a basic underlying tension in the political-economic configuration of advanced-capitalist societies; a tension which makes disequilibrium and instability the rule rather than the exception, and which has found expression in a historical succession of disturbances within the socio-economic order. More specifically, I will argue that the present crisis can only be fully understood in terms of the ongoing, inherently conflictual transformation of the social formation we call ‘democratic capitalism’. Read the rest of this entry »


Democracy instead of the Fiscal Treaty! We need a different approach to tackle the crisis, and a different Europe


Spring 2012.

Merkel and Sarkozy rush from summit meeting to summit meeting, in order to save the euro. The yellow press smears the people of Greece. The struggle over a solution to the crisis is intensifying dramatically: by early 2013, an authoritarian-neoliberal alliance of business lobby groups, the financial industry, the EU Commission, the German government, and other exporting countries, hopes to rush the ‛Fiscal Treaty that has just been concluded in Brussels through the national parliaments. The Fiscal Treaty prescribes an antisocial policy of cuts, and includes penalties for countries that oppose this policy. Thus the Fiscal Treaty restricts democratic self-determination even further. It is the momentary climax of an authoritarian trend in Europe. Read the rest of this entry »


What Now For Greece – Collapse or Resurrection?

Neoliberal economics planned in Brussels and Berlin will push Greece into third-world working conditions

 posted at the guardian.co.uk, Monday 5 March 2012 09.00 GMT

A woman shouts while taking part in an anti-austerity rally in Athens' Syntagma square

An anti-austerity rally in Athens’ Syntagma (Constitution) square last October. Photograph: Yiorgos Karahalis/Reuters

The reporting of the Greek tragedy over the last couple of years gives the impression that economics is a master science. Yet, the mainstream economists who gave Lehman Brothers a certificate of rude health just before its collapse, predicted tat by 2012 the Greek economy would start growing. The economy shrank by 7% last year and a further 6% contraction is predicted for this year, with worse to come. This is thefastest slump in recent times. The discipline of this type of economics is often closer to a confidence trick than a science. Read the rest of this entry »


Greece’s lines now are clear

The Greek elite that tried to push through policies on the back of a deficit it fuelled stands alone and accused

By Costas Douzinas*

The workers of a small bakery and corner shop in central Athens announced yesterday (Weds) that while they would not close because they are serving many vulnerable people they are joining the 2-day general strike by charging all products at cost. It must have been an unexpected surprise in these hard times for their customers who bought their milk and bread at half price. This is an ordinary story of the life of resistance and kindness in Athens. At the same time, no government minister or MP can appear in public without being heckled or ‘yoghurted’ (the Greek style ‘pieing’). Greece is split in two. On the one side, politicians and bankers, rich tax evaders and media barons. Despite party differences, they are united in supporting the most class-driven and violent social and cultural restructuring West Europe has seen. Read the rest of this entry »


Indignant Politics in Athens – Democracy Out of Rage

by Stathis Gourgouris

The historical fact that Athens was the birthplace of democracy has been haunting the crowds assembled for nearly two months in the city’s Syntagma (Constitution) Square, right across from the House of Parliament, protesting undaunted against the government’s incapacity to represent and protect the interests of its own society. The consistent invocation of Athenian democracy by the crowds is hardly the result of patriotic longing for glorious ancestry. The people are haunted by a historical fact that, though imprisoned in its own myth, has emerged with radical contemporary significance as the last line of defense against the violation of people’s basic dignity.

Thus, the question of Athenian democracy is suddenly no longer confined to academic discussions but put to the test in real living conditions. Over several weeks, thousands of people emerging from the anonymity of sprawling urban life have come together to inhabit a public space, day and night, and to organize it around a collective political interrogation. They have been named the indignants, after a similar initiative in Spain and the best seller pamphlet by French Resistance elder Stéphane Hessel Indignez Vous! (2010), but for many of them indignation has been focused, in unprecedented fashion, on exemplary self-organization and self-education in the ways and troubles of radical democracy. Read the rest of this entry »


Democracy vs Mythology: The Battle in Syntagma Square


From Sturdyblog*
I have never been more desperate to explain and more hopeful for your understanding of any single fact than this: The protests in Greece concern all of you directly.

What is going on in Athens at the moment is resistance against an invasion; an invasion as brutal as that against Poland in 1939. The invading army wears suits instead of uniforms and holds laptops instead of guns, but make no mistake – the attack on our sovereignty is as violent and thorough. Private wealth interests are dictating policy to a sovereign nation, which is expressly and directly against its national interest. Ignore it at your peril. Say to yourselves, if you wish, that perhaps it will stop there. That perhaps the bailiffs will not go after the Portugal and Ireland next. And then Spain and the UK. But it is already beginning to happen. This is why you cannot afford to ignore these events.

The powers that be have suggested that there is plenty to sell. Josef Schlarmann, a senior member of Angela Merkel’s party, recently made the helpful suggestion that we should sell some of our islands to private buyers in order to pay the interest on these loans, which have been forced on us to stabilise financial institutions and a failed currency experiment. (Of course, it is not a coincidence that recent studies have shown immense reserves of natural gas under the Aegean sea). Read the rest of this entry »


In Greece, we see democracy in action

The public debates of the outraged in Athens are the closest we have come to democratic practice in recent European history

by Costas Douzinas
guardian.co.uk, Wednesday 15 June 2011 11.00 BST

Syntagma square: ‘The parallels with the classical Athenian agora, which met a few hundred metres away, are striking’.

When Stéphane Hessel wrote in Time for Outrage! that indignation with injustice should turn to “a peaceful insurrection” perhaps he did not expect that the movement of indignados in Spain and aganaktismenoi(outraged) in Greece would take his advice to heart so soon and so spectacularly.
The Greek resistance to the catastrophic economic measures was expected. Throughout modern history the Greeks have resisted foreign occupation and domestic dictatorship with determination and sacrifice. The measures imposed by the IMF, EU and European Central Bank with the full accord, if not invitation, of the Greek government, have led to 11 one-day general strikes, numerous regional strikes and imaginative acts of resistance. Domestic and foreign media avidly reported the confrontations between youths and the riot police that followed major demonstrations and left a thick cloud of teargas hanging over Athens. Led by the parties of the left and some unions, these protests outshone the anti-austerity demonstrations in the rest of Europe. But the relentless scare campaign by establishment media, experts and elite intellectuals spread fear and guilt to the majority of the population and soon succeeded in limiting resistance.

Three weeks ago, things changed. A motley multitude of indignant men and women of all ideologies, ages, occupations, including the many unemployed, began occupying Syntagma – the central square of Athens opposite parliament; the area around White Tower in Thessaloniki; and public spaces in other major cities. The daily occupations and rallies, sometimes involving more than 100,000 people, have been peaceful, with the police observing from a distance. Calling themselves the “outraged”, the people have attacked the unjust pauperising of working Greeks, the loss of sovereignty that has turned the country into a neocolonial fiefdom of bankers, and the destruction of democracy. Their common demand is that the corrupt political elites who have ruled the country for some 30 years and brought it to the edge of collapse should go. Political parties and banners are discouraged.
Thousands of people come together daily in Syntagma to discuss the next steps. The parallels with the classical Athenian agora, which met a few hundred metres away, are striking. Aspiring speakers are given a number and called to the platform if that number is drawn, a reminder that many office-holders in classical Athens were selected by lots. The speakers stick to strict two-minute slots to allow as many as possible to contribute. The assembly is efficiently run without the usual heckling of public speaking. The topics range from organisational matters to new types of resistance and international solidarity, to alternatives to the catastrophically unjust measures. No issue is beyond proposal and disputation. In well-organised weekly debates, invited economists, lawyers and political philosophers present alternatives for tackling the crisis.
This is democracy in action. The views of the unemployed and the university professor are given equal time, discussed with equal vigour and put to the vote for adoption. The outraged have reclaimed the square from commercial activities and transformed it into a real space of public interaction. The usual late-evening TV viewing time has instead become a time for being with others and discussing the common good. If democracy is the power of the “demos”, in other words the rule of those who have no particular qualification for ruling, whether of wealth, power or knowledge, this is the closest we have come to democratic practice in recent European history.
Syntagma’s highly articulate debates have discredited the banal mantra that most issues of public policy are too technical for ordinary people and must be left to experts. The realisation that the demos has more collective nous than any leader, a constitutive belief of the classical agora, is now returning to Athens. The outraged have shown that parliamentary democracy must be supplemented with its more direct version. It is a timely reminder as the belief in political representation is coming under pressure throughout Europe.
The Pasok government’s response has been embarrassingly muted so far. Establishment propagandists blame the protests and the limited violence that followed on the divided left. This tactic cannot work with the outraged, who come from all parties and none. A determined campaign has been agreed to stop parliament voting in the new measures that President George Papandreou agreed with the bankers and Germany’s Chancellor Merkel, which would extend and expand the current recession and rising unemployment until at least 2015 – a cure much worse than the disease. The reaction to these measures will be the high point of the confrontation between “insiders” and outraged, now entering its endgame. Today, the Syntagma multitude is joining forces with the unions in a general strike and the encircling of parliament.
Syntagma is now closer to Cairo’s Tahrir Square than to Madrid’s Puerta del Sol. The experience of standing daily and confronting the parliament opposite has changed the politics of Greece for good and made the elites worried for the first time. In Greek, the word stasis means an upright posture as well as revolt or insurrection. The square was named after 19th-century demonstrations, which demanded a constitution (syntagma) from the king. This is what the outraged repeat today: they are standing upright, demanding a new political arrangement to free them from neoliberal domination and political corruption.


World Democracy

http://www.thetechnoant.info/campmap/


Regimented

The fury and violence of the Libyan uprising has been making me reflect on the Egyptian revolution, and the (still not ancien) regime’s modus operandi.

Extricating that mad bastard in the toctoc will inevitably be bloody. Reported deaths have already outstripped deaths during Egypt’s revolution, in less than a week. Gaddafi has bombed his people from the skies, used mercenaries, and subjected them to hallucinogenic broadcasts of defiance involving hunting caps and umbrellas. One of his sons, the insipid and stupid Seif, has also been enlisted to the media war effort.

I keep thinking back to Mubarak’s last speeches, imagining what the response would have been if, adorned in swathes of linen and a hunting cap, he’d stepped out of a toctoc and mumbled “I’m still in Cairo, you dogs!” But then our Hosny would never do that, obviously. He is a reasonable man who wears suits.

I often lament that if Egypt had to be burdened with a man with dictator tendencies he could have at least displayed a few colourful peccadilloes, like the rest of the world’s crackpots. A collection of high heel shoes, for example, or a penchant for making parliamentary speeches in spandex.

No such luck. Mubarak’s repression was low key in every way except for its cruelty. It was also insidious and self-maintaining, through an extensive network or nepotism, hand greasing and intimidation. For thirty years in Mubarak’s Egypt having the right connections and keeping to the approved script ensured better treatment from cradle to the grave. Read the rest of this entry »


We have your best interests at heart

http://www.occupiedlondon.org/cairo/?p=389

The streets are emptied, it would seem. After last night, mostly-Coptic Christian protestors in front of the TV Building in Maspero Square demonstrating against sectarianism and unfair treatment of Copts have cleared out. Some of their demands were indeed met, and it appears that the Army High Council met with several representatives of the Church and protests who agreed to disband the sit-in. However, others wanted to stay and many who expressed this intent were beaten by military police and forced to leave (reportedly over 200). Rumors circulating about this say that the Army wanted the protestors out before Hillary Clinton’s visit to Egypt, among other things. Read the rest of this entry »


Follow

Get every new post delivered to your Inbox.

Join 3,423 other followers